Conquer the CeMAP 2 Exam 2026 – Unlock Your Mortgage Mastery!

Subrogation rights arise once the insurer has indemnified the insured by paying the claim. When the insurer pays out, it steps into the insured’s position and can pursue the party responsible for the loss (the third party) to recover the amount paid, along with costs. This prevents the insured from being compensated twice and helps keep insurance costs down by shifting the recovery to the party at fault.

Issuing a new policy, canceling a policy, or collecting premiums don’t involve indemnity or payments for a claim, so they don’t trigger subrogation.